The Fibonacci foreign exchange strategy with reversal bars is a simple and easy strategy that involves utilizing Fibonacci retracement in connection with reversal bars.
If you have been trading for a while, you will realize that at frequent times, price has unusual capability to change exactly or close to Fibonacci levels.
The Fibonacci retracement mechanism performs great in a trending market and it will completely of no use if the market is not trending.
Features
1. The recommended time frame for trading with this strategy is 15 minutes and upward.
2. Any currency pairs performs best while trading with this technique
3. The Fibonacci retracement mechanism is the only forex indicators required.
Purchase Rules
1. Market must be in a precise uptrend and in the long run it will begin to decrease back down.
2. Utilize the Fibonacci mechanism and click and pull at the beginning where the trend has initiated to where the trend has commenced to reverse back down and that would provide you the Fibonacci levels to observe out for.
3. The Fibonacci levels to utilize are 38.2, 50 and 61.8. Just pause to watch if price repeals down to any of these levels and if it does then you proceed to the next level beneath.
4. Observe to notice if a vigorous reversal bar creates, that will be your purchase signal. So what you do is position a purchase pending order just two or three pips higher up that bars high.
5. For take-gain, utilize the prior swing high level or zone (observe on the chart beneath).
6. Position your stop-loss three pips beneath its low. If price fall apart upwards, your pending purchase order will be triggered and be in an exchange.
7. If you attain stopped out on 38.2 levels, and price moves downward to 50 levels, repeat the process. If you attain stopped out on 50 levels and if price moves downward to 61.8 levels, do the same thing again.
Auction Rules
1. Market must be in a precise downward trend and in the long run it will begin to increase up.
2. Utilize the Fibonacci mechanism and click and pull at the beginning where the trend has initiated to change backward up and that would provide you the Fibonacci replacement levels to observe out for.
3. The Fibonacci levels to utilize are 38.2, 50 and 61.8. Just pause to observe if price changes downward to any of these levels and if it does so you proceed to the next level beneath.
4. Observe to notice if a bluff reversal bar creates, that will be your auction signal. So what you do is position an auction stop pending order just two or three beneath that bars level.
5. For take-gain, utilize the prior swing low level or zone for that (observe on the chart displayed beneath).
6. Position your stop-loss three to five pips higher up its high. If the price fall apart downwards, your pending auction stop order will be triggered and be in an exchange.
7. If you attain stopped out on 38.2 levels, and price moves up to 50 levels, repeat the procedure. If you attain stopped out on 50 levels and if price moves up to the 61.8 levels, repeat the procedure again.
Utilize this strategy at your own risk. WindsorForex.com cannot be responsible for any losses associated with using any strategy presented on the site. It’s not recommended to use this strategy on the real account without testing it on demo first.
